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InPost will launch 2 thousand parcel machines in the UK by the end of 2013

Press releaseCracow, 23 April 2013

InPost will launch 2 thousand parcel machines in the UK by the end of 2013

2013 will be a turning point of the InPost parcel machines’ international expansion. In the first half 2013, the foreign expansion of Integer.pl Group will focus on the British e-commerce, one of the three largest leading markets of that type in terms of its value (1). The e-commerce sector in the UK is growing rapidly at a rate of 40% per annum (2). In 2012, it was valued at about 78 billion pounds (3) - which was almost 14 times more than the Polish e-commerce - and in 2013 it may rise by 11.5%, up to 87 billion pounds (4). The Integer.pl Group will use the potential of this market by deploying there 2000 InPost parcel machines by the end of 2013. So far, in the UK, Integer.pl has already deployed 220 devices for sending and receiving parcels 24 hours a day, 7 days a week.

Integer.pl Group expansion in the UK e-commerce market is carried out on the basis of a new, combined business model, based on open cooperation with partners, connected with an active individual selling. Thus, InPost parcel machine will be available in the UK, both in cooperation with local operators and courier companies, as well as directly with the e-commerce industry. Currently, Integer.pl Group is currently running a sales team of 35 people offering a full logistics service for up to 120 thousand British e-shops, which constitute 95% of e-commerce market in the UK.

An open, combined operating model for multi-channel access to millions of customers guarantees project profitability at a higher acquired margins of services, which provide the Group with a faster return on investment. 'The UK sales model' can be a breakthrough in the international expansion of InPost parcel machines. Thus, the Integer.pl Group assumes the implementation of a similar policy for another sales markets, where the network of devices for sending and receiving shipments will be developed. The plans for 2013 will also include – apart from the UK - France, Hungary, Turkey, Norway and Sweden, and total investment in the network development is estimated to be up to one billion euros. In addition, over the next two years InPost parcel machines may also occur in both American continents, and then also in Asia.

“The potential of the UK e-commerce market is almost 14 times higher than in Poland. There is no such second European country with such a dynamic pace in developing online sales, and therefore the need to provide professional logistics services. The launch of parcel machines onto the UK e-commerce market has been prepared for over a year. This project required us to not only to create a dedicated sales team that operates on the local market, but also tointegrate our parcel machines with sales platforms available in the UK. The costs related to that launch are estimated at 45 million euros, but we assume that after three years the income from the British market will be accounted for as much as 25% of our revenues", says Rafał Brzoska, CEO of the Integer.pl Group.

The global internet sales in the B2C system increased in 2012 relative to 2011 -by 21.1% according to eMarketer analysts, and reached the level of a billion dollars(5), while noting the projected 18.3% potential growth in 2013, which will give $ 1.3 billion. Great Britain is one of the three leading - after the U.S. and China – countries in e-commercesector in terms of the market value.

The figures projected by the eMarketer (6) shows that in 2013 the UK will maintain this high position, while maintaining, like a year ago, the first position in the world in terms of a revenue per online buying user. The average value of purchases made by the UK resident is estimated at $ 3,878 (7) in 2013 compared to 3585 dollars in 2012, at the global average level of $ 1,318 compared to $ 670 in case of the Chinese e-commerce market.

In 2012, United Kingdom reported 14% increase in the number of online orders and the online sales value in relation to total sales was 10%, with approximately 3% in the case of Poland. In 2012, as many as 34.8 million British people shopped online, and in 2013, the figure is expected to rise to 36.5 million (8). Moreover, according to a IMRG report - The UK's Trade Body for e-Commerce (9) the total number of sent parcels (together with returns) in the UK market in 2012 amounted to 1.3 billion and it is projected to increase by 67%, to 2, 2 billion parcels by 2017.

„In the UK, the most advanced European market in terms of parcel delivery, about 60% of customers choose the “click and download” option in order to collect the parcel. InPost parcel machine network offers such solution as well but in a more convenient way – available 24 hours a day, 7 days a week. This data led to the InPost strong British market entry”, added Rafał Brzoska.

A huge potential of e-commerce market in the UK, where the Group will deploy 2000 Parcel machines still in 2013, provides some optimistic business and sales perspectives not only for the company but also for the whole Polish e-commerce, which according to the report prepared by Paczkomaty® InPost, „Perspektywy e-commerce 2013” –will develop in a similar direction.